[Click eStock] "Samsung Electro-Mechanics Mass Produces Core Components for AR Glasses... Metaverse Benefit Expected"

[Asia Economy Reporter Park So-yeon] NH Investment & Securities stated on the 7th that "Samsung Electro-Mechanics is expected to gradually recover its performance from the first quarter of next year," adding, "In the mid to long term, it is anticipated to benefit from the metaverse through mass production of waveguide modules, a core component of augmented reality (AR) glasses." The target stock price was maintained at 250,000 KRW with a buy rating.

Researcher Lee Kyu-ha of NH Investment & Securities mentioned, "Key front markets such as smartphones, IT devices, and automotive electronics are expected to recover next year, and Samsung Electro-Mechanics is also expected to show performance improvement starting from the first quarter of next year." In particular, the MLCC market is forecasted to undergo a gradual recovery from the second quarter and enter a phase of strong market conditions in the second half of the year.

He also analyzed that the tight supply and demand benefits of flip chip-ball grid array (FC-BGA) in the substrate business division will continue. Researcher Lee Kyu-ha stated, "Although there are market concerns about companies' capacity expansions, substrates used in data centers have large areas and multiple layers, so the rate of production volume cannibalization is relatively faster, and the equipment needed for expansion is in short supply, so the supply shortage is expected to be prolonged."

Regarding the waveguide module, a core component of AR glasses, he said, "Most companies with related technology have been acquired by other companies or are small to medium-sized companies lacking competitiveness," adding, "Samsung Electro-Mechanics is collaborating on AR glasses with domestic clients and global IT companies, and it is expected to benefit the most in the mid to long term."

Researcher Lee Kyu-ha mentioned, "Key front markets such as smartphones, IT devices, and automotive electronics are expected to recover next year, and Samsung Electro-Mechanics is also expected to show performance improvement starting from the first quarter of next year." In particular, the MLCC market is forecasted to undergo a gradual recovery from the second quarter and enter a phase of strong market conditions in the second half of the year.

He also analyzed that the tight supply and demand benefits of flip chip-ball grid array (FC-BGA) in the substrate business division will continue. The researcher stated, "Although there are market concerns about companies' capacity expansions, substrates used in data centers have large areas and multiple layers, so the rate of production volume cannibalization is relatively faster, and the equipment needed for expansion is in short supply, so the supply shortage is expected to be prolonged."

Regarding the waveguide module, a core component of AR glasses, he said, "Most companies with related technology have been acquired by other companies or are small to medium-sized companies lacking competitiveness," adding, "Samsung Electro-Mechanics is collaborating on AR glasses with domestic clients and global IT companies, and it is expected to benefit the most in the mid to long term."

This content was produced with the assistance of AI translation services.